NFTs as part of your e-commerce strategy by Ipa Sudigjo
What is a NFT?
NFT is an acronym for non-fungible token, which basically means that it’s a non-exchangeable, unalterable certificate of ownership. It’s nothing more and nothing less than a digital piece of the blockchain that proves that something is yours. Whether it’s about a digital art work, exclusive sneakers for your avatar in the Metaverse or artists releasing their tracks as an NFT, which makes their fans co-owner of the music, an NFT allows you to prove that it’s your property.
We could go on and on (and on) about the digital wonder that is the NFT but since our friends over at Shopify already did that, we would like to refer you to this (Dutch) blog or this Shopify Plus blog if you’d like to know more about the tech behind NFTs or are looking to create one yourself.
What does the arrival of NFTs mean for e-commerce?
You could be tempted to think that this development is only relevant for the world’s biggest and most innovative brands, like Gucci or Nike, but the fact that originally very traditional markets, such as the wine trade, are seriously exploring the possibilities, is a sign that NFTs are here to stay.
In addition to being a new revenue stream, selling NFTs in your webshop will take your customer experience to the next level. All successful brands will underscore the importance of loyal customers and the traction of loyalty programs such as Loyalty Lion and Yotpo is increasing rapidly. You can think of NFTs as a next-level loyalty program - it's a great way to reward loyal customers, transform them into fans, and to create demand (and hype) around your brand.
An NFT doesn’t only come with a proof of ownership but it can also grant you access to exclusive stuff.
NFTs allow your most loyal customers to partake in exclusive drops, pre-launches and events, which creates a community of your most important and engaged supporters.
And, if your brand is experiencing growth, then this club of fans also benefits from the appreciation of their NFT - this potential financial reward will only increase the community’s commitment. Win-win!
For example, the digital Bored Ape artwork NFTs aren’t only a proof of ownership but also a ticket to the world’s most exclusive networks. Or take streetwear brand The Hundreds, which sells digital artworks that double as a ticket to fresh drops, exclusive online and in-store events and give them fast-lane access during special sales.
Finally, selling NFTs shows that you’re an innovative pioneer, appeals to younger generations and makes sure that you’ll still be relevant in 10 years.
Between real life and online
You won’t be surprised by the fact that we’re NFT fans and not just because we already own a couple ;) We believe that NFTs will change the world. Not just the digital world, but also the physical space that we all occupy. NFTs will build a bridge between the “real” and the online world. Consider flagship stores in the Metaverse, for example, or artists giving exclusive online shows, StockX which has created NFTs for exclusive physical shoes stored in their vault or Ralph Lauren selling digital clothing for your Metaverse avatar in addition to their physical collection.
NFTs are revolutionary in the way they’re exactly in between Web 2.0 and Web 3.0 and our advice would be to start sooner rather than later. At this moment in time the possibilities are almost endless and there’s plenty of room for experimentation.
Selling NFTs in your Shopify webshop
NFTs are a hot topic on Shopify’s agenda, because it’s the very first e-commerce platform that allows you to sell NFTs. Right now, it’s only possible for US-based Shopify Plus merchants to join Shopify’s Beta Program, which allows them to mint NFTs on popular blockchains and add them to their shop. They can then sell them in any way they want, both with cryptocurrencies and traditional payment methods.
We can hear you think: ‘So this means that I won’t be able to sell NFTs with my European Shopify webshop?’. That’s right but that can change tomorrow. Or the day after tomorrow. Or next month. But that it will happen (soon) is something you can count on.
Explore NFT opportunities for your brand
High time for you to start exploring the many possibilities that NFTs have to offer your brand. And because the NFT market is still in its infancy (or in baby shoes as us Dutchies like to say), it can go either way, so our advice would be to ‘just go and have fun with it’ to discover what it can do for your brand.
It’s important to really think hard about whether or not NFTs fit in with your brand, ‘cause let’s be honest, NFTs are not for everybody. Carefully consider how your customers could use your NFTs and how they would improve their lives and/or customer experience. Of course, we’re here to help.
For inspiration, we have compiled a short list of ambitious brands that preceded you and have taken their first steps in the wonderful world of NFTs:
Code: your NFT-on-Shopify partner
Because we’re closely working together with Shopify, we have courtside tickets with a clear view of the NFT playing field. By the time NFTs will make their definite debut in European Shopify stores, we’re ready to help you with building your online store and to make sure that the selling of NFTs doesn’t only go off without a hitch but also contributes to additional revenue and your brand experience as a whole.
So, if you’re interested in the many possibilities that NFTs offer and how they can take your business to the next level in the near future? Then please reach out to us. We would love to not only be your Shopify agency, but also your NFT-on-Shopify partner.
It is a topic that I personally am very involved with and I would love to take the time to discuss NFTs with you. Feel free to send me an email at email@example.com.